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Television Industry Outlook. Andrew Shulklapper Vice President, DisplaySearch February 23, 2004. Outline. DisplaySearch Data Methodology Overview of Shipment Forecasts TV Technologies Defined Size of Market by Technology Size of the Market by Screen Diagonal
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Television Industry Outlook Andrew Shulklapper Vice President, DisplaySearch February 23, 2004
Outline • DisplaySearch Data Methodology • Overview of Shipment Forecasts • TV Technologies Defined • Size of Market by Technology • Size of the Market by Screen Diagonal • The Race Toward Thin and Light Weight • Which Products Will Fare Well
About DisplaySearch • Date Established: March 1996 • Strategy: Survey entire FPD food chain - equipment and materials suppliers, panel producers, OEMs, brands, distributors and retailers - to provide perfect information. • # of Employees: 22 worldwide, 8 in Asia • Products: Biweekly, Monthly, Quarterly and Annual Reports Databases and Models Custom Consulting Conferences/Seminars (Europe, Japan, Taiwan and US) • Locations: US (Austin, Chicago, Houston, Richmond, San Jose and Tempe) Japan (Tokyo) Korea (Seoul) Taiwan (Taipei) • Partners: Europe (Meko) U.S. (Insight Media, TFCinfo and Westar) • Languages: English, Japanese, Korean, Mandarin and Taiwanese
Technology Definitions • CRT Direct View = Glass Tube Televison • Flat Panel = LCD or Plasma (PDP) • CRT RPTV = Rear Projection using Traditional 3 gun/CRTs • Microdisplay = DLP, LCD or LCOS Rear Projection
Growth is in Flat and Thin • CRT Tube Declines • Flat Panel Grows Quickly • Rear Projection Grows Moderately
Why Most Consumers Buy New TV Technology • Not for Technology Itself • Compelling Design • Lifestyle Integration, Fashion • Convenience – Ease of Use, Integrated Funtions • Quality
Lifestyle Driving the Shift, not Technology • Modest Variations in Technology Performance Will Matter Less than Satisfying Lifestyle Needs • Design, Convenience Features, and Value are Paramount
MOSTConsumers Technology Agnostic • Within flat panel, value will drive mix • LCD will dominate small-medium, PDP larger sizes • Microdisplay a wildcard for limiting 40”+ growth
Which Products will Fare Well • Those well-positioned within a polarizing market • Value-oriented with good design and practical features • Leading design, features and performance from impressive brands • Most at risk? Leading technology products at high prices, regardless of the discount to valued brands